Bitcoin is expected to reach $100,000 by the end of 2024, according to Standard Chartered.
Geoff Kendrick, Standard Chartered’s head of digital assets research, claimed that the leading cryptocurrency Bitcoin might hit $100,000 by the end of 2024. The “crypto winter” is ended, according to Kendrick, and variables like as recent banking sector instability, a stabilisation of risk assets as the US Federal Reserve concludes its rate-hiking cycle, and better profitability of crypto mining could all contribute to Bitcoin’s upward trajectory.
Bitcoin has been on a tear this year, with the price breaking beyond $30,000 for the first time in ten months in April. This price surge indicates a partial rebound after the crypto business lost trillions of dollars in 2022 as central banks raised interest rates and several crypto firms crumbled.
While predictions of skyrocketing valuations have been prevalent during previous Bitcoin rallies, Kendrick’s letter hints that the path to $100,000 is becoming clearer. However, sources of uncertainty remain, and Kendrick admits that investing in Bitcoin still carries some risk.
It’s worth noting that Kendrick’s prediction isn’t the first time Bitcoin has been overvalued. A Citi analyst estimated in November 2020 that Bitcoin might reach $318,000 by the end of 2022. Nonetheless, Bitcoin concluded last year at $16,500, down approximately 65%, proving that predictions may not always come true.
The recent turbulence in the financial industry, according to Kendrick, could be a contributing cause to Bitcoin’s eventual ascent. Banks have experienced a difficult environment as a result of the epidemic and other issues such as low interest rates and an increase in digital currency. Traditional banking institutions are facing more competition as a result of the emergence of digital currencies, and they must adapt to stay up with this trend.
Another factor influencing Bitcoin’s potential ascent is the stability of risk assets as the US Federal Reserve’s rate-hiking cycle comes to an end. The pandemic has created severe economic disruptions, and central banks around the world have implemented monetary policies to deal with the economic impact. The Federal Reserve has been rising interest rates in the United States, but this cycle is coming to an end.
The estimate by Standard Chartered that Bitcoin might hit $100,000 by the end of 2024 is a bullish perspective for the top cryptocurrency. However, it is critical to recognise that investing in cryptocurrencies remains dangerous and volatile, with no promises of success. The forces driving Bitcoin’s increase are important, but there are still uncertainties, and investors should approach with care.